Consumer credit growth slow in November
Jan. 10, 2014 – Total consumer credit growth in November was the slowest since April, increasing by an annualized 4.8 percent after increases of 7 and 6.3 percent in previous months.
NAFCU Senior Economist Curt Long analyzed data from the Federal Reserve in a Macro Data Flash. He found non-revolving credit – mostly based on vehicle and education loans – increased at an annual rate of 6.4 percent, while revolving credit – mostly credit cards – increased 0.7 percent.
“Consumers avoided running up credit card debt during the month, which contributed to the slow overall consumer credit growth,” Long wrote. “Non-revolving credit remained solid as consumers took advantage of low interest rates to purchase vehicles and as young adults pursued higher education. Non-revolving credit is expected to continue to drive overall consumer credit growth.”
Total consumer credit for credit unions went up 0.6 percent in November; banks’ went up 1.1 percent, and financial companies’ went down 0.2 percent. Credit unions’ share of the total consumer credit market was 8.6 percent in November. Banks held 40.8 percent, and financial companies held 22.1 percent.
NAFCU Macro Data Flash